TaxTMI 
TaxTMI 
2016 (12) TMI 456
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....nagar. He has filed his return of income on 26.6.2000 declaring total income at Rs. 99,597/-. This return was processed under section 143(1) of the Income Tax Act, 1961 on 1.1.2002. It emerges out that two months prior to 3.11.2011 two trucks of one firm of Arvindbhai Kantilal Angadia came from Ahmedabad loaded with goods of businessmen reached Rajkot Morbi Ocroi Naka. The assessee alongwith other official examined these trucks, and thereafter intimidated the truck owners and other Angadia that if they would pay a sum of Rs. 2 lakhs then custom department will not interfere in their work. It emerges out from the record that Angadia have made complaint to Anti-Corruption Bureau and ultimately a search was carried out at the residence of the ....
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.... Rs. 45,285/-. Appeal to the CIT(A) did not bring any relief to the assessee. 4. The ld.counsel for the assessee has contended that the assessee has been acquitted from charges under the Prevention of Corruption Act. He placed on record copy of decision rendered by the Special Judge of Jamnagar at Jamnagar. This judgment has been passed on 25.7.2011 i.e. after the decision of the ITAT in the quantum appeal. The Tribunal has decided the appeal of the assessee bearing ITA No.2182/Ahd/2006 on 23.4.2010. This judgment was challenged by State Government in Criminal Appeal No.1391 of 2011. The Hon'ble Gujarat High Court has rejected the appeal of the State Government and upheld the acquittal of the assessee vide order dated 7.3.2012. The judgmen....
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....ade unexplained investment. He deserves to be visited with penalty. 6. I have considered rival contentions and gone through the record carefully. Section 271(1)(c) of the Act has a direct bearing on the controversy which reads as under: "271. Failure to furnish returns, comply with notices, concealment of income, etc.- (1) The Assessing Officer or the Commissioner (Appeals) or the CIT in the of course of any proceedings under this Act, is satisfied that any person (a) and (b) ** ** ** (c) has concealed the particulars of his income or furnished inaccurate particulars of such income. He may direct that such person shall pay by way of penalty. (i)and (Income-tax Officer,)** ** ** (iii) in the cases referred to in Clause (c) or Clause (d....
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....der this section can range in between 100% to 300% of the tax sought to be evaded by the assessee, as a result of such concealment of income or furnishing inaccurate particulars. The other most important feature of this section is deeming provisions regarding concealment of income. The section not only covered the situation in which the assessee has concealed the income or furnished inaccurate particulars, in certain situation, even without there being anything to indicate so, statutory deeming fiction for concealment of income comes into play. This deeming fiction, by way of Explanation-1 to section 271(1)(c) postulates two situations; (a) first whether in respect of any facts material to the computation of the total income under the provi....
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.... disallowance in computing the total income of the assessee for the purpose of section 271(1)(c) would be deemed to be representing the income in respect of which inaccurate particulars have been furnished. 8. In the light of the above, if we examine the facts of the present, then it would reveal that when quantum was decided, ITAT was not having the benefit of judgment rendered by the Special Judge, Jamnagar dealing with the Special Case No.ACB No.13/2003 instituted against the assessee by the ACB. The explanation of the assessee is that sum of Rs. 36,000/- was deposited out of the gifts received on the birth-day of his son. Such gifts were received from relatives. As far as second addition is concerned, it is based on a document which wa....